In a first, SBI’s annual profit crosses Rs. 50000 crore

SBI has become the country’s first lender to report an annual net profit of over Rs 50,000 crore. The public sector bank has also overtaken HDFC Bank, which was the most profitable lender in India for several years.

SBI reported a net profit of Rs. 16,695 crore for the March quarter, an increase of 83% over Rs 9,114 crore in the year-ago period. The bank’s net profit for FY23 stood at Rs 50,232 crore, a rise of 59% over Rs 31,676 crore recorded in the previous year. HDFC Bank had reported a net profit of Rs 44,108 crore for FY23, an increase of 19% over Rs 36,961 crore in FY22.

Profits were driven by a widening of interest margin to 3.84% in the fourth quarter as both the loan book and interest rates on loans grew together. The bank was under less pressure to raise deposits as it continued to have surplus liquidity in its book.